#看懂K线 K line charts are commonly used charting tools in stock and cryptocurrency trading, helping investors analyze price trends. Here are the basic elements of K lines and interpretation methods:
Basic Elements of K Lines
1. Body:
- The body represents the opening and closing prices over a period of time (such as 1 minute, 1 hour, 1 day).
- If the closing price is higher than the opening price, the body is usually white or green, indicating an increase (bullish candle).
- If the closing price is lower than the opening price, the body is usually black or red, indicating a decrease (bearish candle).
2. Shadow:
- Upper shadow: Indicates the difference between the highest price and the top of the body.
- Lower shadow: Indicates the difference between the lowest price and the bottom of the body.
3. Doji:
- When the opening price and closing price are equal, a doji will form on the K line chart, indicating market indecision.
Common K Line Combinations and Their Meanings
1. Long White Candle:
- The body is long, indicating a large price increase and strong bullish sentiment in the market.
2. Long Black Candle:
- The body is long, indicating a significant price decrease and strong bearish sentiment in the market.
3. Hammer:
- The lower shadow is long, with a small body, appearing in a downtrend, possibly indicating a market reversal to the upside.
4. Inverted Hammer:
- The upper shadow is long, with a small body, appearing in a downtrend, possibly indicating a market reversal to the upside.
5. Hanging Man:
- The lower shadow is long, with a small body, appearing in an uptrend, possibly indicating a market reversal to the downside.
6. Shooting Star:
- The upper shadow is long, with a small body, appearing in an uptrend, possibly indicating a market reversal to the downside.
7. Doji:
- The opening and closing prices are close, indicating a balance of buying and selling forces in the market, possibly signaling a trend reversal.
How to Understand K Lines
- Individual K Line: A single K line can only provide short-term information and should be analyzed in conjunction with preceding and following K lines.
- Combined K Lines: A combination of multiple K lines better reflects trends, such as consecutive long white candles indicating strong upward movement.
- Combine with Trading Volume: K line changes are more meaningful with high trading volume, such as a long white candle accompanied by high trading volume, indicating upward momentum.